UK's Civil Engineering Sector Faces a Talent Cliff by 2026

Edge Brief:

• Escalating Talent Crisis: The UK's civil engineering sector is nearing a critical shortage of skilled labor due to major ongoing and upcoming projects like HS2, the Lower Thames Crossing, and the Stonehenge Tunnel, with the talent gap expected to peak in 2026.

• Workforce Challenges: From a high of 2.6 million workers in 2008, the sector now employs about 2.1 million. This shortage is compounded by an aging workforce where only 19% are under 25, alongside a demand for approximately 225,000 new workers by 2027.

• Strategic Responses Needed: To combat this looming crisis, enhanced recruitment strategies, focused on diversity and better wages, robust apprenticeship programs, and greater visibility of the sector are essential to attract new and technologically adept workers.

Edge Insight:

Big picture: The UK's civil engineering sector is grappling with a severe talent shortage, driven by emerging projects such as the Lower Thames Crossing, the Great Grid Upgrade, and the Stonehenge Tunnel, in addition to ongoing developments like HS2 and Hinkley Point C. This escalating demand for skilled labour is expected to peak in 2026, risking project delays and heightened competition for skilled workers.

Why it matters:

• Talent Drain: Decline in workforce numbers, dropping from 2.6 million in 2008 to about 2.1 million by the end of 2023, a net loss of 465,000 workers.

• Aging Workforce: Half of construction workforce is aged between 25 to 44, with only 19% under 25.

• Demand vs. Supply: According to the Construction Skills Network, by 2027, the construction sector will need approximately 225,000 new workers to keep pace with ongoing and future projects.

Zoom in:

• Upcoming Projects: Large-scale initiatives such as the £58bn upgrade of the UK’s high-voltage transmission network, the £9bn Lower Thames Crossing and the £1.7bn Stonehenge Tunnel.

• Technological Skills Gap: A significant segment of the industry believes that a lack of technological and digital skills contributes to the talent shortage, highlighting the need for modern skill sets in traditional fields.

What's next: Addressing this critical shortage requires a multifaceted approach:

• Diverse Recruitment: Companies should broaden their recruitment strategies by targeting diverse backgrounds and increasing salaries to attract skilled individuals.

• Apprenticeships and Training: Emphasising apprenticeships and ongoing training to develop a workforce skilled in both traditional and emerging technologies is crucial.

• Enhanced Visibility: Initiatives to improve the perception of the construction industry and the visibility of construction careers, particularly among young people and women, are vital to attract new entrants.

This growing crisis demands immediate action from both industry leaders and policymakers to ensure the UK's infrastructure ambitions are not compromised by the looming skills shortage.